How may Working Tax Credit and the Childcare Element be affected?
Tax Credits are another form of government childcare support provided by HM Revenue & Customs. The level of payment depends on personal family income and, therefore, we cannot know exactly how salary sacrifice may affect your entitlement. The Childcare Vouchers Scheme uses salary sacrifice to save tax and NI on Childcare Vouchers. This means HSBC is effectively paying the sacrificed proportion of your childcare fee. Therefore, you will not be able to include this sacrificed amount on your Working Tax Credit declaration and, if claiming the “Childcare Element” of Working Tax Credit, you will not receive any on the fee paid on your behalf by the Bank. So, if you are receiving the Childcare Element of the Working Tax Credit then you need to check the effect of salary sacrifice on your entitlement. You may be better off retaining the Childcare Element. If you are not entitled to the Childcare Element then you are almost certain to benefit through salary sacrifice and it is possible, as sal
